Bitcoin with the majority of other cryptocurrencies got into “red zone” this week
On the night of September 19, the price of the main crypto coin demonstrated a sharp decline in high volumes. Just in one hour bitcoin fell in price by $500, dropping below $9,861. According to analysts at Skew company, the drop in the price provoked the liquidation of long positions on the BitMEX crypto exchange in the amount of $154,7 million.
Bitcoin’s price drop was registered after the news that the Chinese government are ready to carry out mass-scale inspection in Inner Mongolia autonomous region to identify and eliminate illegal mining companies by October this year. According to CoinDesk, the initiative will be carried out within the nationwide phase-out plan on the bitcoin mining in China.
Coinmarketcap’s top-ten altcoins followed bitcoin to the “red zone”, with the exclusion of stellar, that rose in price by 12%. Meanwhile, it was just two days ago that crypto enthusiasts were discussing the growth of altcoins in social networks and various communities, saying it implied a possible market recovery.
Recent forecasts about bitcoin price recovery seem improbable against the background of the falling market. For instance, on the verge of this event, Arthur Hayes, CEO of BitMEX crypto platform, connected the plans of the Federal Reserve System for a regular cash injection with the following BTC rate recovery. Crypto entrepreneur tweeted that Bitcoin will once again come back to the record of 2017, surging to $20,000.
The US businessman Mike Novogratz also believes that the surge of the main digital coin to $20,000 will commence when investing banks become active. Earlier he said that this will take place either in the middle or at the end of Q4 of this year. After that, CEO of Galaxy Digital believes that bitcoin will start its path to $40,000.
According to Coinmarketcap, the token has been showing a gradual growth since the beginning of 2019. It started from the mark of $3,759 in January and has been gradually gathering momentum, having reached $8,005 in May. The mark of $13,058 in the first fortnight of July became a sort of a record. Since that on bitcoin never dropped lower than $9,000.
Many crypto enthusiasts think that there are not many prerequisites for reliable forecasts yet. However, it is also too early to speak about fatal decrease of cryptocurrency price, especially given that fact that this night, from 19 to 20 of September, bitcoin rate fully regained its losses and came back to the values of $10,100 — $10,300.